Capstone Green Energy Received Follow-on EaaS Rental Order for 30 C65 Microturbines From a Major Oil & Gas Producer

Capstone Green Energy (NASDAQ:CGRN), announced that Horizon Power Systems, the company’s exclusive Distributor for the Rocky Mountains in the U.S. and Western Canada, has secured an Energy as a Service (EaaS) long-term rental agreement for 30 Capstone C65 microturbines to be installed at 15 new and remote well sites throughout the San Juan Basin in New Mexico. The EaaS contract from this midstream oil and gas company adds to the customer’s current owned fleet of 45 microturbines in operation, the first of which were commissioned in 2015.

The new energy systems feature two high pressure natural gas-fueled microturbines per site and will provide power to Lease Automatic Custody Transfer (LACT) units, which are used to transport crude oil from the production site to a central storage facility. Located throughout the 24,000 square mile basin, the well sites are extremely remote. Power reliability was a key factor in the customer’s continued investment in microturbines, which are known for their efficient performance and low maintenance requirements in addition to their ability to withstand harsh weather conditions.

To ensure the systems maintain peak performance throughout the life of the rental, the customer also signed a Factory Protection Plan (FPP), Capstone’s service program designed to minimize downtime and lock in all maintenance costs.

“Our midstream oil and gas customer knows the dependability of Capstone Green Energy microturbines,” said Sam Henry, President of Horizon Power Systems. “The combination of microturbines’ reliability and low operating costs make them ideal for a long-term rental and Factory Protection Plan. Capital outlay to build and launch 15 new remote well sites can be significant. By entering into an EaaS rental agreement for the microturbines, they will lower capital expenses while still getting the benefits of microturbines.”

“In addition to providing ultra-reliability to these typically remote, unmanned sites, microturbines have the added benefit of producing very low emissions,” said Darren Jamison, Chief Executive Officer of Capstone Green Energy. “Now that several states are starting to require oil and gas companies to make emissions reductions, microturbines are proving to be an attractive option. Add to that the Capstone’s flexible own or Energy as a Service options, and they become an ideal solution to modern energy challenges.”